In an interview with Bloomberg TV on Wednesday, Singapore’s Finance Minister Heng said that the Singapore dollar (SGD) exchange rate has sufficient band to move as appropriate.

China has taken decisive measures to deal with the virus outbreak, he added.

On Tuesday, Heng announced a 5.6 billion Singapore dollars ($4.02 billion) budget in the coming year to help businesses and households tide through the ongoing coronavirus outbreak.

He also announced a delay in the planned a raise in the goods and services tax.

FX Implications

The Singapore dollar saw a fresh buying wave on the above comments, knocking-off USD/SGD to a fresh daily low of 1.3912, where it now wavers.

The pair faces rejection near 1.3930 region for the fourth straight session on Wednesday, as the US dollar retreat from multi-month peaks across its main peers.